The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset's book value.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the journal entry for recording depreciation expense?
Solution: The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset's book value.
Steps: 5
Step 1: Identify the asset that is being depreciated (e.g., equipment, vehicle).
Step 2: Determine the amount of depreciation expense for the period (e.g., monthly, yearly).
Step 3: Create a journal entry to record the depreciation.
Step 4: Debit the Depreciation Expense account to show that an expense has occurred.
Step 5: Credit the Accumulated Depreciation account to reduce the asset's book value.
